So FCA (dual customs border) just for NI a la @MESandbu & @RaoulRuparel? If Ireland and EU willing to accept it, could work.
Lots of people misunderstood the proposal at the time. The EU issue with FCA was that it’s difficult to know when final sale is UK or EU, which could give UK industries an unfair competitive advantage.
Actual process of running dual tariff regime fairly straightforward:
First, pay higher tariff/EU upon import, then
a) If importer demonstrates final sale in (lower tariff) UK claims rebate; or
b) trusted companies pay correct tariff on import dependent on point of final sale
First, pay higher tariff/EU upon import, then
a) If importer demonstrates final sale in (lower tariff) UK claims rebate; or
b) trusted companies pay correct tariff on import dependent on point of final sale
Anyway, who knows if this is what the plan is. Guess we’ll find out tomorrow. In practical terms, means NI in customs union with EU, but politically speaking not quite.
Addendum: so question is whether EU would accept Chequers but just for NI. Risks to single market lower than all-UK, but still present.
And to be clear, I have no inside insight on this - I am going off this thread by the well-informed @denisstaunton:
